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Globe says Element Financial sees robust growth ahead
2014-07-11 06:52 ET - In the News
The Globe and Mail reports in its Friday, July 11, edition that Element Financial says it is poised to become the fastest-growing financial company in Canada. The Globe's Tim Shufelt writes that Element could well take that title over the next couple of years, with estimated annual earnings growth, excluding acquisitions, in the range of 15 per cent to 20 per cent, says Davis Rea boss John O'Connell. Davis Rea owns Element stock. Mr. O'Connell says that is a pace of growth unlikely to be exceeded by the big banks, fund management companies or life insurance companies. There is plenty more to like about Element beyond its expansion, including the prospect of a dividend and a reasonable valuation with plenty of possible catalysts for future stock-price gains, notes Mr. Shufelt. Mr. O'Connell says: "In a market that's looking for growth assets with growing dividends, this is one I think people are going to gravitate to. And a lot of the big funds don't own it yet." The Globe says Element has positioned itself to capitalize on an upswing in the capital expenditure cycle. Element stock doubled in value through 2013. Earnings are due to grow further through a combination of organic growth and acquisitions.